Comparison    Employee       Contractor

Income                 $124000.              $137600

Adjustment                        0               8446      

AGi                        124000                129138

Deduction               7000                       5700                      

Exemption               3650                       3650

Taxable Inc          113350                  119786 

Tax FED                  25458                    27260

State Tax @5%    5668                       5989

Other / SE tax    0                              16928

Take home:        $92,874         $78, 959

Once you work as an independent contractor , you will be receiving 1099 Misc and in box 7 will show the full amount you have been paid. You have to file as an business income with schedule C , and you may able to deduct some business related expenses and it varies. You need to keep  track of you business expenses for audit. In this comparison I have deducted 5000 as business expense therefore the adjustment is 8446.  You can put Ruth IRA and something like that may lower your tax liability , still your business expenses should be around 12-15K to be in par.